There are various job-related expenses that can be taken as itemized deductions on Schedule A of your U.S. federal income tax return. While most of these deductions can only be taken to the extent that they exceed 2% of your adjusted gross income, if you have sufficient medical expenses, taxes, mortgage interest, charitable contributions, and casualty or theft losses in order to itemize deductions, you should also take advantage of this tax benefit for certain miscellaneous job-related expenses.
As an employee, you can take an itemized deduction on Schedule A for certain
out-of-pocket job-related expenses that are not reimbursed by your employer.
Un-reimbursed employee expenses are one of the categories of miscellaneous
deductions that are subject to the 2% of adjusted gross income limit.
Job-Related Expenses
Some of the types of un-reimbursed employee expenses you can deduct include
the following (aside from travel, transportation, entertainment, and gift
expenses; and business use of part of your home):
Depreciation on a computer or
cellular telephone your employer requires you to use in your work
Tools needed for your job
Work clothes and uniforms
required by your employer that are not suitable for ordinary wear
Protective clothing required
in your work, such as hard hats, safety shoes, and glasses
Union dues
Dues to professional
organizations and chambers of commerce
Subscriptions to professional
journals
Work-related education
expenses
Expenses to look for a new
job in your present occupation, even if you do not get a new job
Depreciation on a Computer or Cell Phone
You may be able to deduct depreciation on a computer or cell phone if the
use is ”for the convenience of your employer” and is “required as a condition
of your employment”. These conditions will depend on the facts and
circumstances in each case, but in general terms, “for the convenience of your
employer” means that there is a substantial business reason for requiring their
use, and “required as a condition of your employment” means that you cannot
properly perform your duties without them.
If you use the computer or cell phone more than 50% in your work, you can
claim depreciation under the General Depreciation System (GDS). You may also be
able to take the section 179 deduction, and the 50% or 30% special depreciation
allowance the year you start using them.
If you do not meet the 50% use test, you must use straight-line depreciation
under the Alternative Depreciation System (ADS), and you will not be able to
take the section 179 deduction or the special first year depreciation
allowance.